Implementing fiat payment gateways to Web3: Is it worth it?
When launching a Web3 project, it is crucial to consider its target audience and their payment methods of choice.
When launching a Web3 project, it is crucial to consider its target audience and their payment methods of choice. While crypto-natives will be more comfortable using blockchain payment methods, newcomers might be deterred from the unfamiliarity of Web3 wallets.
This begs the question: Is implementing fiat payment gateways in Web3 projects worth it?
To provide an answer, we can analyze first-hand empirical data from one of our own projects.
At the end of 2022, Artiffine helped dm, one of Europe’s biggest drugstore chains, launch their first Web3 initiative: Muze Inspirace (Muses of Inspiration). The collection, dedicated to empowering women and donating 100% of proceeds to charity, consisted of NFTs of artwork from several well-known Czech artists. The original artwork was sold at a launch-event auction, and the NFTs were available for purchase for a short period of time afterwards.
The target audience for the event and collection was a very much heterogeneous mix. While some crypto and Web3 enthusiasts were definitely among the ranks of the potential buyers, dm’s customer base is certainly not made up exclusively of blockchain experts.
For this reason, Artiffine implemented Crossmint, a fiat payment gateway that allows anyone to pay for NFTs with a normal credit/debit card. In addition, Crossmint automatically creates a custodial wallet for anyone paying by card, so they instantly have a place to store their newly purchased NFT.
Buyers, therefore, had a choice: to purchase the NFTs from the collection using crypto from their Web3 wallets (in this case, MetaMask), or using their credit or debit cards via Crossmint. And this is where the results get interesting…
At the launch event, all artwork was auctioned off for fiat payments. However, when we look at the empirical on-chain data from the NFTs themselves, we start to see the breakdown of how crucial implementing fiat payment solutions can be:
As you can see, our data shows that 78% of all buyers preferred using fiat payment solutions to purchase their NFTs. This means that more than three quarters of all revenue from the collection would have been lost had we not implemented a fiat payment gateway for dm.
Extrapolating further, this shows that fiat payment gateways in general have the potential to increase sales for Web3 projects. The numbers speak for themselves: implementing fiat payment gateways in Web3 projects is absolutely crucial for projects looking to maximize their reach and revenue.
While selling digital assets for cryptocurrencies and breaking free from the shackles of legacy financial systems has long been the utopian dream of blockchain enthusiasts, our data shows that giving people the option to pay using familiar payment methods is highly beneficial to the overall performance of Web3 projects.
If you are launching any kind of Web3 project and would like to implement a fiat payment gateway, Artiffine can help. Just like with dm, we can implement any fiat payment solution to help expand your project’s reach and revenues.
Additionally, our legal team can take care of all of the red tape regarding KYC compliance and other associated financial regulations. We’d love to hear what you’re building, so feel free to get in touch!